1. what will be effect on ITC if
a. Raw Goods or
b. Capital Goods or
c. Finished Goods
loss by fire in company??
2. what will be the effect on ITC if goods become outdated with us
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ITC QUESTIONS
Replies (4)
Quick Summary
ITC will have to be reversed.
If goods have been lost during manufacturing process then there is some case laws of which benefit can be taken otherwise ITC will have to be reversed.
If goods have been lost during manufacturing process then there is some case laws of which benefit can be taken otherwise ITC will have to be reversed.
1. ITC need to be reversed
2. Outdated means , expired i, e. medicine/drugs Which is being return to Manufacture & via Credit Note or Issuing fresh bill
2. Outdated means , expired i, e. medicine/drugs Which is being return to Manufacture & via Credit Note or Issuing fresh bill
Payment of itc of raw material as per shown in the profit and loss account.When supply the finished goods after one financial year,output gst will be earning .But his gst liability on finished goods only may deposit in the cash deposit register in the portel.which is treated as income on his liability.
As per the Blocked Credit Provision of Section 17(5) clause (h) of the CGST Act 2017, "ITC of Goods lost, stolen, destroyed, written off or disposed off by way of gifts or free samples" is blocked and hence you have to REVERSE the ITC claimed on raw materials, finished goods and capital goods which are destroyed by fire.
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